Compensatory Approaches in Islamic Jurisprudence and Iranian Law Regarding Damages Arising from Unauthorized Transactions

Abstract

The unauthorized transaction (muʿāmala fuḍūlī), as one of the specific legal institutions in Islamic jurisprudence and Iranian law, has consistently been subject to extensive jurisprudential and legal debates. The primary consequence of such a transaction is the infliction of damage upon either the original owner or the contracting party. Accordingly, identifying and analyzing compensatory approaches to these damages within both the realm of Imāmī jurisprudence and Iranian private law can be an effective step toward ensuring contractual justice and protecting the injured parties. Using a descriptive–analytical method, this article examines the most significant compensatory mechanisms, including the obligation to return the property itself, its substitute, or its value; liability arising from causation (tasbīb); the civil liability of the unauthorized transactor (fuḍūlī); and even the possibility of invoking specific contractual options (khiyārāt) for the original party. Finally, by comparing jurisprudential doctrines with statutory provisions, the study evaluates the strengths and existing challenges of Iranian law in this area.